What’s keeping you from taking advantage of the low prices and mortgage rates available today? Concerned that you may need to sell in a few years and won’t be able to get your equity out of your home?

Suppose a buyer purchases a home and finds out that they need to move in two years. Instead of selling the home, they could convert it to a rental. It’s possible that it could have a positive cash flow even with the small down payment. In most cases, the conversion would not accelerate the mortgage.

The price of homes and low interest rates combined with a very strong rental market in most areas has attracted a lot of investors. Non-owner occupied mortgages generally require 20-30% down payment compared to a 3.5% down payment for a FHA owner occupant.

The following example looks at a home that might have been purchased as a principal residence and then converted to a rental at the end of two years. There are certainly lots of variables to consider but the high indicated rate of return merits closer examination of the possibilities.

For the buyer who has good credit and ample funds for down payment and acquisition costs, there may never be as good a time to buy a home as now. For the buyer who is concerned that they might have to move in the near future, converting it to a rental might make a great investment opportunity.

4708 Ocean Drive is located in the City of Fort Worth and is available now for purchase. This stunning home has 2 living areas, 2 dining areas, 2.1 Bathrooms, and 4 bedrooms. The open floorplan in the den and kitchen/breakfast area is great for entertaining and family events. There is also a study downstairs. The large backyard has a pear, apple and peach tree! Shown by appontment only.

It is the mantra of people who missed a great deal. It’s the theme song of the procrastinator. It’s the refrain that reminds us of the one that got away.

Some people are still beating themselves up because they didn’t recognize the housing bubble was really going to burst. It is impossible to change the past but will they see the signs of the next housing trend?

In the past four years, prices have adjusted with 30% corrections nationally and much more in areas with high percentages of foreclosures. New homes are almost non-existent. Interest rates are slightly above record lows. Consumer goods are skyrocketing; our budget deficit and national debt are staggering and escalating inflation appears certain.

“Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.” states Shawn Tully, Senior Editor at-Large for Fortune magazine in a March 28, 2011 article.

“If I would have known that this was the best buyer’s market ever, I could have taken advantage of the prices and interest rates; I should have fixed my cost of housing for years to come.” Don’t catch yourself saying this. You owe it to yourself and your family to get firsthand information to see what your options really are.

Be there first on those awesome priced one of a kind homes , , , Order a free VIP Buyer Service and received listings the day they are on the market.  While 3rd party websites have searchable capabilities; when you call for an appointment to tour the home there has been a status change and the home is under contract.  Email request with property criteria and start receiving listing tomorrow.

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can’t sell their home for what it is currently worth.

Buying up in a down market is actually advantageous because while you might get less for the home you’re selling, you’re also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you’re waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision.

Neighborhood values have changed . . What is the home worth?  Find out by emailing me for a CMA of your area. 

Forget Macy’s and Crate & Barrel. Set up your bridal registry at the bank and use the funds for the FHA down payment on a home. This could be perfect for people getting married who already have their household items and really need help getting into a home.

FHA has had this little known program that allows cash gifts since 1996. Sellers, builders, real estate agents or anyone with a financial interest are restricted fom making a gift contribution. It’s not difficult to set up and it’s available with any FHA lender.

1. Inform your mortgage professional early of your intention to obtain all or part of your down payment from gifts to the FHA homeowner bridal registry.
   
2. Open a savings account at your bank named “bridal registry account”
   
3. Friends and family are given account deposit information

Interestingly, this program is not limited to people intending to be married. It is available for other situations where gifts are typically received by individuals. Other occasions could include graduation from college or graduate school.

Subscribe to my VIP Buyer Service and receive new listing as they become available in the area of your choice.  Email me today Pat@RealEstate-Pat.com or call me at 214-682-4990.  

Summertime is almost here and millions of Americans will be starting home improvement projects.  Whether they’re classified as maintenance, updating or energy saving, they should make homeownership more enjoyable.

Remodeling magazine’s 2010-11 Cost vs. Value Report suggests that some improvements are a better investment than others.  Front door and garage door replacements are two of the easiest and return the greatest percentage of cost on resale.

Kitchen and bathroom updates transform an older home and instantly give visitors and buyers a fresh impression. Countertops and appliances can be expensive but yield great results.  Painting the cabinets and replacing the hardware is much less expensive to change the look and feel of the rooms.

Energy efficiency enhancements can improve your enjoyment of the home and help save money on utility costs.

• Replace older appliances – refrigerators, ceiling fans, water heaters, air-conditioners
  
• Add insulation to keep your home cool in the summer and warm in the winter
  
• Seal air leaks around doors and windows; holes in attics and crawl spaces with caulk, spray foam or weather stripping – more information
  
• Seal all heating and cooling system ducts – more information

Property values have changed in most areas.  What is your home now worth?  Find out for free, email me today for your report at pat@RealEstate-Pat.com or visit this website:  http://www.realestate-pat.com/FreeHomeValuation.   Your report will be emailed back to you.  Then looking through the eyes of a buyer could show you what features most date your home and could order the priority that you tackle the projects.  Act now while we are in the top selling season of year for Residential Home Sales in the Dallas-Fort Worth area.

Uncertainty as to whether prices will continue to fall has to be one of the most common causes of buyer procrastination.  Paying too much wouldn’t be a smart thing but price isn’t the only factor to consider.  Interest rates have as much effect on housing costs as price.

A small increase in mortgage interest rates can offset a significant drop in home prices.  If the price of the home were to come down by 5% but the interest rates were to go up by .5%, the payments might be close to the same.

In the example below, if the price of $175,000 home went down 5% but the interest rate went from 4.75% to 5.25%, the payments would actually be $4.98 more at the cheaper price.  If while the buyer was waiting for the home to decrease 5% and the interest rate increased by 1%, the payments would actually go up by $55.30.

Then, of course, there is always the possiblility that the price of the home doesn’t go down but the rate does go up by 1%.  The payments would be $104.58 more per month, each and every month for as long as you have the mortgage on the home.

As a Residential Finance Consultant, I can provide solid information that will help you make better buying decisions.  A home is a place to feel safe and secure, to raise your family, share with your friends and an investment.  It’s an investment in your marriage, your family and your future.  You owe it to yourself to check out the real numbers in your market because every market is different.

Beat Other Home Buyers To Hot New Listings! Email me today Pat@RealEstate-Pat.com or call me direct at 214-682-4990. Subscribe to my VIP Buyer Service and receive new listing as they become available in the area of your choice.  Also, getting Pre-Approved will take the mystery out of  what price range you will qualify for and the approximate payments you will have.    

Whether you rent or buy, you pay for the house you occupy. You must live somewhere and there’s a price to pay for it. A simple analysis will show you whether it’s cheaper to rent or buy.

Some people don’t have any choice but to rent because they don’t have the means to qualify for a loan. But for those who do have a down payment and good credit, they actually have a choice of whether to rent or buy. In some cases, owning will cost significantly less than renting.

Rentals are in high demand in many markets and rents are going up. People who have experienced foreclosures and short sales have increased demand. The first comparison a discerning buyer needs to make is whether the house payment is lower than what they’d have to pay in rent.

The next comparison needs to consider the other benefits that accrue to an owner such as principal reduction, appreciation and tax savings. These can dramatically weigh in favor of owning rather than renting.

Tenants have made the decision to buy a home. The decision currently facing them is whether to buy it for themselves or their landlord.

Beat Other Home Buyers To Hot New Listings! Email me today Pat@RealEstate-Pat.com or call me direct at 214-682-4990. Subscribe to my VIP Buyer Service and receive new listing as they become available in the area of your choice.  Also, getting Pre-Approved will take the mystery out of  what price range you will qualify for and the approximate payments you will have.    

Besides the obvious Federal Income Tax deadline which is April 18th this year, the deadline for individuals who can qualify for the Homebuyers Tax Credit is quickly approaching – April 30, 2011.

The extension was granted for members of the military, Intelligence and Foreign Service who have served outside of the U.S. for at least 90 days between January 1, 2009 and May 1, 2010.  The sales contract must be signed by all parties by April 30, 2011 and closed by June 30, 2011.

Qualifying taxpayers may be eligible for either the first-time credit of $8,000 or the current homeowner credit of $6,500.  To get additional information from IRS.gov, click here.

This is a wonderful opportunity for a person to have a home of their own, to raise their family, share with their friends and feel safe and secure.  We’re in a market that is ripe with advantages for buyers who can afford it.  Prices have come down considerably in the last two to three years.  Interest rates are at an almost all-time low but are expected to rise soon.  The selection of homes is good which allows buyers to find the home that meets their needs.

A qualifying veteran with eligibility could get into a home with no down payment, no closing costs if paid by the seller and the tax credit.  These tax credits are refundable which means that any amount that isn’t used to offset tax liability will be refunded to the taxpayer in a check.  You’re practically being paid to buy a home.

There probably will never be this combination of advantages available for buyers who qualify.  Don’t miss this opportunity.  You owe it to yourself and your family to see that it may actually cost you less to own than to rent and what it will take to get into a home.  Email me today and we can start the search for your new home!

Many homeowners are overlooking an opportunity to lower their property taxes by not challenging their tax assessment.  Property values have decreased in the past two to three years and the assessment may not reflect the current market value.

Deadlines are critical and if the challenge isn’t made in a timely fashion, the opportunity to lower the assessment can be lost for the year.  You’ll need tdo verify the deadlines for your area.

The process for the challenge is relatively simple and can be done by a homeowner or by professional representation.  In some cases, if there is an obvious mistake, the state employee may be able to correct it without a hearing.

Check the property assessment record for common mistakes that can include the number of bedrooms, baths, lot size and square footage of the improvements.  Documentation is required to verify the errors.  If you have an appraisal, such as when you purchased the home, it can serve as proof of the discrepancy.

In other cases, a hearing is required before a panel of citizens who will listen to testimony from the taxpayer and a representative of the assessor’s office.  Based on the documentation presented, the panel will make a ruling to lower the value, make no change or in some cases, raise the valuation.

Recently closed comparables are the most common proof presented in a hearing.  Comparables should be similar in size, condition and location.  A knowledgeable real estate professional can filter the results generated in a MLS search to identify the most appropriate.

I’m prepared to supply the comparables, filing deadlines and other pertinent information you need to make a challenge.  Lowering your assessment will result in lower property taxes and more money in your pocket.  Email me now for a comparable report in your area.